SRINAGAR: J&K Bank’s net profit has witnessed a steep rise of 164%YoY in the December Quarter of FY 2021-22. The bank stated this after its Board of Directors reviewed and approved the numbers for third quarter and nine-months ended December 31, 2021in a meeting held on Tuesday at the bank’s Zonal Office in Gurgaon, New Delhi.
The profits have more than doubled YoY to Rs 173.95 Cr from Rs 65.94 Cr recorded for the third quarter of the last financial year, while as in aggregate terms, the bank has earned Rs 389.36 Cr net profit for nine-months, which is 235%up against Rs 116.37 Cr clocked during nine-months of the last fiscal.
The bank’s net interest income, or core income, has increased by 3 %for nine-months YoY to Rs 2935.73 Cr from Rs 2853.36 Cr recorded for the corresponding period last year. The Net Interest Margin (NIM) has been recorded at a comfortable level of 3.67% (annualized) for nine-months and the Cost of Deposits has come down by 55 bps to 3.66% from 4.21% recorded last financial year.
The Bank’s CASA Ratio continues to remain as one of the industry best at 56.32%.
Commenting on the growth numbers, MD & CEO Baldev Prakash said, “We have seen good growth in profits on YoY basis. Our other numbers also depict our performance during the last three quarters of CFY and building upon the steady-momentum of last many quarters we will definitely improve the numbers further as we consolidate and clock our growth numbers for the current financial year (CFY) 2021-22.”
The bank’s net NPA’s as percentage to net Advances ratio is at 3.02% while the Gross NPA ratio has been recorded at 8.93%. Providing sufficiently for its bad loans for the quarter ended December, 2021, the Bank’s Provision Coverage Ratio for the reviewed quarter is at 81.45%.
Regarding the bank’s asset-quality, the MD& CEO asserted, “While we have provided sufficiently for our bad loans in the balance sheet, we have put robust institutional measures in place to restrict further slippages in future by instituting early warning systems and pro-active monitoring mechanisms at all operative levels with reviews on monthly basis.”
“Besides, we have already initiated a string of measures to bring our NPAs down that include Bank’s One Time Settlement (OTS)-2021 Scheme that was launched in the second week of January and is still in vogue. However, going forward, quality lending will be the key feature of our business strategy both in our core area of operations and beyond.” he added.
The Bank’s advances have increased from Rs 66545.32 Cr to Rs 68365.94 Cr during the quarter reviewed while as the deposits have shown a steady growth of 5.3% from Rs 103804.23 Cr to Rs 109298.40 Cr. The Bank has witnessed over 10% YoY growth in advances in its core area of operations, i.e., J&K & Ladakh.
The MD & CEO expressed his gratitude to the UT Government for its uninterrupted support and thanked the Directors on Bank’s Board for their effective guidance and supervision.

KR Desk